The true mother of all CA fiscal showdowns has now fully arrived, to wit:
· The Guv dropped a huge bomb late last week when he rescinded the state’s ability to borrow short-term for cash flow with so-called RAWs (Revenue Anticipation Warrants) – effectively forcing the Legislature’s hand to come up with a budget in the next few weeks, or literally cause the state to run out of money.
· The Guv’s RAW move signals he is fully cranked up for a battle royal with the Leg. He shows far less willingness to cave in this time around to whatever deal the Dems and Reps can come up with. Maybe the moment has truly arrived…when not only will he start “blowing up the boxes” of state government structures, but the budgetary smoke and mirrors as well.
· The Dems in the Leg are in some seriously difficult political times. Not only is there is no agreement between the Senate and Assembly Dem leadership about how to get a budget deal done, but inside the Dem caucuses, especially in the Assembly, semi-chaos breaks out at times on how much to cut, tax, and yell.
· Reps in the Leg are mysteriously toned-down at present about the entire mess. They may have done the political calculus and figured that the political winds are finally blowing in their favor after the May special election when it comes to a “NO NEW TAXES” mantra, and decided to let well enough alone. Their possible strategy? Let the Dems twist in the wind and have to go to the people alone if they want to deliver some seriously bad budget news…i.e. were coming at you with tax increases…like it or not.
· Absolutely nobody knows at present what state agencies, departments, boards, commissions and programs are safe, done for, or somewhere in between. Anyone who tells you they do isn’t paying close enough attention to the near frenzied, changing daily, climate under the dome at the state Capitol. Don’t be fooled…this thing is a long way from over.
Tags: budget crisis, California, citizen voice, gary dietrich, governor, nonpartisan, political
